Welspun taps EY for next big clean-energy stake sale of $100 million
Close to a decade after selling its renewables portfolio to Tata Power, billionaire B.K.Goenka’s Welspun World has charted out its next big deal.
New Delhi: Close to a decade after selling its renewables portfolio to Tata Power, billionaire B.K.Goenka’s Welspun World has charted out its next big deal. This time, it has hired EY to sell a majority stake in Welspun New Energy, its clean-energy platform, for an equity value of around $100 million, according to two people aware of the development.
“The sale process has been launched," one of the two people cited above said, requesting anonymity. “The next step involves signing of non-disclosure agreements, post which the financial model and the information memorandum will be shared. After meeting the management for discussions, prospective investors will give their indicative proposals."
Welspun New Energy has 1.2GW of contracted capacity. Of this, 866 mega watt (MW) is contracted with state-run NTPC Ltd, Solar Energy Corporation of India (Seci) and Gujarat Urja Vikas Nigam Ltd. The company also has 3.1GW of projects under development that have transmission connectivity.
Welspun World is an infrastructure development company with a focus on transportation, water and wastewater, oil and gas exploration, and tunnelling segments. In 2016, it had sold its entire 1.1 gigawatt (GW) renewable energy portfolio of Welspun Energy Ltd to Tata Power for $1.4 billion.
An EY spokesperson declined to comment. Queries emailed to a Welspun World spokesperson on late Sunday night remained unanswered till press time.
The proposed sale of Welspun New Energy comes in the backdrop of a major cleanup of India’s green energy contracts.
As reported by Mint earlier, the Union power ministry has directed state-run procurers—Seci, NTPC, NHPC, and SJVN—to cancel contracts by the end of this month where it is not feasible to sign power purchase agreements (PPAs) and power supply agreements (PSAs).
India currently has about 197GW of installed renewable energy capacity. The government wants to add 50GW every year to reach 500GW by 2030. Looking further ahead, India plans to build 1,800GW of renewable capacity by 2047 and 5,000GW by 2070 to stay on track for its green transition and net-zero goals.
Meanwhile, foreign direct investment (FDI) in India’s electricity sector has been on an upward trajectory. According to the International Energy Agency’s (IEA’s) World Energy Investment 2025 report, about 83% of power sector investment in the country went to clean energy in 2024.
India was the world’s largest recipient of DFI (development finance institution) funding in 2024, receiving around $2.4 billion in project-type interventions in clean energy generation, according to the IEA report. It noted further that FDI in India’s electricity sector has doubled since pre-pandemic levels to reach $5 billion, and there is scope to accelerate further.
As per IEA’s estimates, India will need to invest $1.3 trillion in non-fossil power generation capacity by 2035 to meet its energy transition goal, and stay on track to meet net zero by 2070.
This in turn has attracted both domestic and global investors. Some of the transactions as reported by Mint include World Bank’s International Finance Corp (IFC), Munich-headquartered Siemens AG and Singapore’s Fullerton Fund Management’s plans to acquire 49% stake in Gurugram-based green hydrogen manufacturer Hygenco Green Energies Pvt. Ltd.
The primary equity raise process is being run by Avendus Capital for the deal having an equity and enterprise value of $125 million and $250 million, respectively. Also, the country’s largest oil refiner and marketing company Indian Oil Corp.’s (IOC) renewable energy subsidiary Terra Clean Ltd plans to acquire a 50% stake in renewable energy firm Fourth Partner Energy Pvt. Ltd (FPEL) in a deal having an equity value of around $400 million.
In addition, Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (MUFG) in October launched the sale process of Global Infrastructure Partners (GIP)-owned Vena Global Group Pte Ltd’s complete sale of its Indian green energy platform Vena Energy India, in a deal having an enterprise value of around $1 billion.
Also, Sembcorp Industries Ltd, Torrent Power Ltd, INOXGFL Group’s Inox Green Energy Services Ltd, and General Atlantic owned Actis Llp are among half a dozen shortlisted bidders to conduct due diligence to acquire Macquarie Asset Management’s Green Investment Group (GIG) platform Vibrant Energy in a transaction code named Project Notos having an enterprise value of around $600 million.
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